Asiacells revenue jumps by 30 percents

Iraqi mobile operator Asiacell expects revenue to increase around 30%
this year, boosted by demand from an influx of foreigners working in the
oil sector, Reuters reports.

According to the cellco’s CEO Diar Ahmed, turnover will rise to between USD1.4 billion and USD1.5 billion in 2010, compared to USD1.1 billion a year earlier, despite a global downturn and a tough investment climate. He added that Asiacell signed up almost half of the two million new subscribers in Iraq in 2009 and growth is expected to accelerate as the private sector plays a wider role in an improved regulatory climate.

Iraqi mobile network, AsiaCell expects its revenue to grow by nearly a third this year, boosted by foreign workers using its network, its CEO, Diar Ahmed told the Reuters news agency in an interview. The company is also still on track for a stock market floatation, as required under the terms of its operating license.

"Projections are double digit digit growth in terms of customers and revenues," Ahmed said. "This is despite huge challenges. We have learnt how to work in difficult situations," he told Reuters in an interview on the sidelines of a regional telecoms conference. The company has often complained about security problems and called on the government to do more to stop attacks on its base stations.

He also criticized the government for planning to take a 35% stake in a fourth mobile network when it is licensed, saying that the government cannot be both regulator and shareholder in the telecoms industry.

According to the Mobile World, the mobile network had 7.74 million subscribers at the end of March 2010, representing a market share of around 41%.

Commenting on the government’s plans to license a fourth national operator, in which the Ministry of Communications (MoC) would have a 35% stake, Ahmed said: ‘The entry of the MoC as a competitor will create a conflict of interest because the government cannot be an operator and regulator and competitor at the same time.’ Asiacell Communications is a consortium comprising Asiacell Iraq (30%), Qatar Telecom (Qtel, 30%) and investment group Merchant Bridge (40%).

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